Chinese buying has shown little resistance to rising prices since August, and won’t through mid-December. The only push-back we’re hearing is on Poplar, but even Poplar prices will hold firm or bump up a bit. Too many Asian distributors and manufacturers let supplies dwindle this summer in anticipation of price drops that never came.
Aggressive domestic buying will also contribute to tight supplies and rising prices over the next two months. Concentration yards will try to bulk up inventories to serve strong domestic and export demand in 2014.
Flooring plants will look to lock in extra inventory heading into winter, as they normally do, but with the added urgency of unusually strong fall flooring sales. Even some cabinet plants will buy extra with an eye towards future needs.